The UAE government has increased pension payments for the month of March compared to the previous year, reflecting a rise in the number of beneficiaries.
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According to the General Pension and Social Security Authority (GPSSA), a total of AED766,457,286.56 ($208.7 million) in pension payments is scheduled to be released on Wednesday, March 27, 2024.
Compared to March 2023, when approximately AED689.8 million was disbursed to pensioners, the value of payments for March 2024 has risen by over AED76 million.
This increase is attributed to the addition of 1,525 individuals as beneficiaries, bringing the total number of eligible recipients to 47,940, as stated by the GPSSA.
The disbursements are intended for Emiratis who fall under the purview of Federal Pension Law No. 7 of 1999 for Pension and Social Security, including its amendments. Additionally, eligible UAE nationals whose files are managed by the GPSSA on behalf of the Ministry of Finance are also entitled to receive these payments.
Increasing monthly pension contributions for new Emirati employees
In December 2023, GPSSA announced an increase in monthly pension contributions for Emirati employees who joined the workforce after October 31, 2023. The contribution rate has been raised from 20 percent to 26 percent.
This adjustment in retirement contributions for new Emirati employees further follows the introduction of Federal Decree Law No. 57 on Pension and Social Security by the GPSSA on November 17, 2023.
The new law aimed to maximize the utilization of an Emirati’s expertise over an extended period of time, ultimately serving the public interest. It also involves reassessing the calculation of retirement pensions, ensuring that their value increases in proportion to the number of years of employment.
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